pl. explain single entry system
Dear Student,
In single entry accounting system, the rules of debit and credit are not strictly followed. Here in this system, we record only the single aspect of a transaction. This is the reason, why Single Entry System is commonly termed as Accounts from Incomplete Records or Defective Double Entry System. Under this system, we maintain only the Cash and personal accounts.
Such system is usually adopted by small business owners who lack enough funds to hire an accountant. These small traders often have improper knowledge of accounting and maintain their accounts just to serve their own purpose.
For further doubts, do get back to us.
Keep posting!!
In single entry accounting system, the rules of debit and credit are not strictly followed. Here in this system, we record only the single aspect of a transaction. This is the reason, why Single Entry System is commonly termed as Accounts from Incomplete Records or Defective Double Entry System. Under this system, we maintain only the Cash and personal accounts.
Such system is usually adopted by small business owners who lack enough funds to hire an accountant. These small traders often have improper knowledge of accounting and maintain their accounts just to serve their own purpose.
For further doubts, do get back to us.
Keep posting!!